Benzinga | Sep 30, 2021 05:35AM EDT

TDH Holdings. Announcesd Entry into Agreement for Registered Direct Placement of $9.1 Million of Common Shares @$0.89/Share and Warrants @$0.02/Warramt

TDH Holdings, Inc. (NASDAQ:PETZ) ("TDH" or the "Company"), a PRC-based company that specializes in the development, manufacturing and sales of pet food products in China and beyond, today announced that it has entered into a securities purchase agreement with certain investors for a registered direct placement of $9.1 million of common shares and accompanying warrants at a price of $0.89 per share and $0.02 per warrant. The Company will issue an aggregate of 10,000,000 common shares and warrants to purchase an aggregate of 20,000,000 common shares to the investors. The warrants are initially exercisable at $2.16 per share. The aggregate gross proceeds from the sale of the securities, before deducting fees payable to the Placement Agent and other estimated offering expenses payable by the Company will be approximately $9.1 million.

The Company plans to use the net proceeds from this offering on strategic acquisitions and investments in complementary business. However, the Company has no current understandings, agreements or commitments for any specific material acquisition at this time. The completion of the placement is expected to occur on or about September 30, 2021, subject to the satisfaction of customary closing conditions. Boustead Securities, LLC acted as the exclusive placement agent in connection with the offering.

These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein. A shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (the "SEC"). A prospectus supplement related to the offering will be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

For further information regarding this transaction, please see the Form 6-K to be filed with the SEC.